Amid the accelerating process of digital transformation, electronic performance monitoring has become an essential tool in organizational management. As a process that utilizes information technology to observe, record, and analyze employees’ work behaviors and performance, electronic performance monitoring not only enhances organizational efficiency and optimizes decision-making support but also exerts a profound influence on employees’ psychological states and behavioral responses. This paper systematically reviews the conceptual evolution, measurement methods, and related research progress of electronic performance monitoring. The findings reveal that the definition of electronic performance monitoring has evolved dynamically from a “technological tool” to an “organizational practice,” and its measurement approaches have developed from a single-dimensional to a multi-dimensional perspective, encompassing aspects such as monitoring purpose, monitoring intensity, and monitoring feedback. Existing empirical studies indicate that different types of electronic performance monitoring, such as developmental and preventive monitoring, have distinct impacts on employees’ job performance, innovative behavior, and psychological responses. Overall, developmental monitoring tends to foster positive behaviors and creativity, whereas preventive monitoring may trigger psychological resistance and counterproductive work behaviors. This review provides a theoretical foundation for understanding the dual-edged effects of electronic performance monitoring and lays the groundwork for developing localized measurement instruments and exploring its underlying mechanisms in future research.